Suppose you buy a 720 percent coupon bond today for 98000


Suppose you buy a 7.20 percent coupon bond today for $980.00. The bond has a face value of $1,000, has 16 years until maturity, and pays interest semi-annually. Three (3) years after purchasing the bond you decide to sell it. At that time the YTM on your bond has decreased by 100 basis points. What is the realized yield on your investment?

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Financial Management: Suppose you buy a 720 percent coupon bond today for 98000
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